497 Double Eagles Found by Worker in French Vineyard Graded by PCGS

The array of U.S. gold coins found in an attic in France. The coins now have been certified by PCGS on behalf of Bonhams and Champagne Lanson. (Photo courtesy of Lanson-BCC Group.)

CoinUpdate reports that the 497 U.S. Double Eagle gold coins found in an old grape-drying shed in France have been graded by PCGS. Most of the nearly 500 coins graded MS63 or better, with three 1924 Double Eagles grading MS66.

The coins, found by a worker remodeling an old building belonging to the Lanson Champagne company, will be auctioned in Los Angeles June 3rd by Bonhams. The coins are dated between 1851 and 1928, and no one knows how they got into the rafters of the building or who put them there.

Morning Market Update Nov 23

The U.S. dollar is down across the board after the Thanksgiving break, as economic news from Germany, Canada and the U.K. firm the euro and the CAD. The weaker dollar gives headroom for gold and silver, headroom that they’ve taken -  gold is comfortably above the $1,730/oz mark, and silver is eyeing $33.50 as its next goal.  The short trading day today in the U.S. should lead to light volume.

Oil prices are settling down as the Gaza situation doesn’t seem to be escalating. In India, gold demand hit 9-week high as the wedding season gets into full swing, but the new law forbidding banks to issue loans for gold or silver purchases (including jewelry) and the rupee falling to a ten-week low should dampen domestic speculation and “exuberance” there.

Looking ahead, the EU is not only still wrangling with the IMF over the Greek loan terms (the EU wants to push the deadline back two years,) but now there is impasse between member states over the organization’s own budget. Germany, the U.K. and others want to see administrative budget cuts and the retirement benefits of EU government employees cut to be closer to those of the member governments, which have cut employee benefits during the financial crisis.

Another sticking point is farm subsidies- France and Poland are fighting a reduction in farm subsidies, which other nations say is necessary in order to trim the EU budget to under a €1 trillion.

by David Peterson

Super Committee Not So Super – Focus on Precious Metals Likely to Intensify in Face of Congressional Ineptitude

From the Gainesville Coins website:

There are 9 days before the congressional super committee tasked with $1.2 trillion in deficit reduction over the next decade is set to hit its first deadline.  Created as part of the 2011 Budget Stability Act, the job of the bipartisan committee is still far from complete as partisan bickering prevent any real progress.  No surprise, Democrats are demanding revenue increases while Republicans are refusing any increase in taxes.  Really?

With the level of partisan politics seemingly rising with the addition of highly inflexible tea-party Republicans, the ability of Congress to get anything done continues to decline.  Without any propensity to compromise, the possibility that the super committee gets nothing done is high.  The consequences would be unpleasant.  The Budget Stability Act mandates automatic cuts of $1.2 trillion to discretionary programs, including the military, if no propsals are put forth.

Since it would be politically unacceptable to Republicans to reduce military spending, and since across the board cuts in discretionary programs would be unacceptable to Democrats, it would appear that some sort of compromise should be found.  The next ten days will show America how dysfunctional its government is.

For precious metal investors, cutting $1.2 trillion over 10 years is laughable.  In 2011, the Federal deficit was $1.3 trillion – more than the $1.2 trillion lawmakers are trying to cut over 10 years.  In fact, 2011′s deficit was virtually identical to 2010.  Furthermore, with GDP forecasts for 2012 being slashed of late, the possibility of another $1 trillion-plus deficit cannot be ruled out.  With Europe clearly heading into recession, the headwinds to government finances are clear.

What does this mean for gold and silver investors?  Well, one would say that the USD is bound to weakend in the face of this uncontrolled spending.  Even if the super committee were to agree to a series of deficit reduction measures, the size of the deficit is ludicrous.  As has been well documented, the negative correlation between the USD and gold and silver remains a dominant theme.

For investors seeking to add to their gold and silver holdings ahead of the upcoming Congressional circus, take advantage of Gainesville Coins offer on 1oz PAMP gold bars at just $14.99 over spot.  Gainesville is also offering the 10oz NTR silver bar at as low as $0.59 over spot.

French Mint Sold Out of 1,000-Euro Gold Coin Ahead of Release

The French Mint (La Monnaie de Paris) is scheduled to release a beautiful new 1,000-euro gold coin this July – and as of the 11th, all reservations have been made and the coin is officially sold out. Coinweek tells the full story below:

French Mint Sold Out of New 1,000-euro gold coin, before July Release

Posted by CoinWeek on April 11, 2011 10:00 AM

The French Mint, La Monnaie de Paris, will issue a new 1,000-euro gold coin this summer. Reservations for the limited-edition coin opened on Friday, with hundreds of collectors queuing outside the Mint in Paris. As of today the coin has been sold out.

Only 10,000 of the coins will be minted. The Mint is also making a 100-euro coin in silver, of which 50,000 will be issued.

The coins are the most valuable ever created by the French Mint.

Both feature the Greek hero Hercules, representing fraternity, and two female figures symbolising equality and liberty.

The coins will be legal tender, but are more likely to be kept as collection pieces. By Saturday morning, the 1,000-euro coin was already being resold online for 1,200 euros.